Super convoluted setup. I guess the gist isn't too hard to understand, but still. Quite the mess.
A part of me hopes this exposition style doesn't last too long and I do think the way they introduced the information all in one go makes things seem more complicated than it actually is like you said.
However, given the nature of complex palace intrigue coupled with the historical setting AND the whole supernatural/virtual stuff of the MC's videogame mission, I predict we won't be shaking this feeling of being lost for quite a decent amount of time.